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Posts Tagged ‘Extra Money’

I apologize this is going to be a long one.
Past May I lost my job and was not able to get unemployment. I abandoned my apartment since I was very honest and informed my landlord I don’t think they ever filed anything against me, haven’t seen anything on my credit report yet. Anyways I was well off in my job, had 4 credit cards, a car loan and a loan for my furniture set. All of these had never had a late payment, my credit score was at 720 something. Obviously afterwards everything except my car loan is now at least 180 days overdue, all but 2 of the cards are in collections. About ,000 in debt and I owe my dad ,000. I owe my dad ,000 because he drove out and helped me move back across country with all of my stuff since I had no place to live. Well, I took a phlebotomy class and after 3 months of applying the only place that was offering me a job was back in my original state so I packed my car up and I am living rent free with my long time boyfriend who I had moved away from… I hope that wasn’t confusing. So I’m out where I began, all of my furniture that I owe 00 on is 1000 miles away. I’m only making 00 a month. I have 00 in credit card debt. I’m trying to pay off this debt and I’m wondering the best way to go about this while keeping my credit score in mind. Since May it has dropped down to 516. I’ve thought about filing for bankruptcy but I think that would be a bigger scar on my credit. Also I think it’s a moral issue, I made this debt and it’s my responsibility. I’ve thought about trading in or selling my car, but even if I did I’d still be paying on it since it would resell for so much less. I’ve also thought about selling my furniture but I don’t think I would get that much money from it. It’s all in my parents basement not getting any use and I’d love to have it out here but from what I’ve found it costs a lot of money to transport it across the country. So does anyone have any advice?
The credit cards were cut up as soon as I lost my job, all of my extra money is going towards the debt. I am not spending on anything extra at all.

I have a lot of credit card bills that I have consolidated. I’ve recently started working a part-time job to earn some extra money. Should I use this extra income to soley pay off my credit card debts or should I continue paying off my credit card debt slowly and put the extra money from the part-time job in my savings account? My big goals are to be credit card debt free so that I can may start investing in real estate. Please give only serious answers only.

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If you’re like many Americans, you own one or two vehicles, have a mortgage and are saddled with unwanted debt. Who among us doesn’t like the finer things of life? But what if liking the finer things in life led you into a vicious cycle of debt that keeps rising and keeps your nose to the grindstone?

That newest trinket or gadget might make you feel better for a little while – or until you get your Visa bill. If you’re serious about eliminating your debt, then stop spending and start planning.

Make it a point to never shop just to make yourself feel better. Stress leads people to spend money in an attempt to relieve some of the life pressures they’re under. This is often referred to as emotional spending.

Sadly, emotional spending leads to more stress from having spent the money! When you’re upset, don’t look for answers in retail therapy and don’t shop to keep up with friends or family who can afford a higher lifestyle than you can.

If you can’t afford it with cash, don’t buy it. This will help stop credit card purchases and impulse buying. Carry a certain amount of cash with you and leave the ATM card at home – along with the credit cards.

To eliminate your debt, you need a plan. Using a notebook or ledger on a software program like Excel, and divide it into two sections. The first is for your living expenses such as your utilities, food, etc.

In the second section, make columns for debts and anything you spend money on such as entertainment, haircuts and so on. This will help you keep track of how and where your money is being spent each month.

Once you see where your money is going, take steps to eliminate unnecessary spending. While you’re cutting back, start putting any extra money that you’re saving toward paying off the existing debt.

Once you have it all paid off, don’t make the common mistake of recharging everything up again. This just puts you in the same bind and causes you more stress. There are many people who pay for everything (even cars and homes) in cash – and they no longer have the financial worries most consumers are burdened with.